Uvenco UK plc Trading Statement (8921N)

TIDMUVEN

RNS Number : 8921N

Uvenco UK plc

14 May 2018

14 May 2018

UVENCO UK PLC ("Uvenco" or the "Company")

Trading statement

Since the Company's last announcement on 29 September 2017, the Company has experienced a continued gradual decline in revenues which, despite the implementation of a number of cost control measures, has resulted in negative cash flows. In the short-term this has been supported by drawing down on the additional GBP1m loan facility entered into with Cleitus Investments Limited in June 2017, but as this loan has nearly been drawn down in full the Board has been reviewing its options.

The Company is now in discussions with a third party that may lead to the sale of its trading subsidiaries, Uvenco Limited, the vending operator, and Snack in the Box Limited, the franchising operator. It is expected that the purchaser would also assume a substantial proportion of the Company's debt obligations, therefore it is likely that the consideration receivable by the Company will be minimal.

Whilst there is no certainty that definitive agreements will be entered into, the disposals as contemplated would comprise a fundamental change of business pursuant to Rule 15 of the AIM Rule for Companies, and would be subject to shareholder approval.

In the event that the proposed disposals do not proceed the Board will be obliged to consider steps to protect the position of creditors. In such an instance it is unlikely there will be any value for equity shareholders.

Further announcements will be made in due course.

For further information:

 
 Uvenco UK PLC 
 
Sergei Kornienko CEO   020 8879 8300 
 

Jeremy Hamer, Chairman

 
Stockdale Securities Limited 
Tom Griffiths 
 Richard Johnson               020 7601 6100 
 

The information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 14, 2018 02:00 ET (06:00 GMT)